There are various compliance issues in Liechtenstein with regard to private client wealth management. In this context, the government recently introduced specific anti-avoidance provisions to the Tax Act regarding the tax exemption on dividends and capital gains and implemented the Fourth EU Anti-money Laundering Directive and EU Regulation 2015/847 on the transfer of funds.
It is well known that new investment company listings have been relatively sporadic of late – this is not entirely due to Brexit, but it is clear that Brexit has stalled a number of fundraisings which have gone out to market. Fortunately, once there is some clarity on the way forward, there may be a race to market. Data from the London Stock Exchange (LSE) to the end of January 2019 shows that Guernsey is home to more non-UK incorporated companies listed on the LSE than any other jurisdiction globally.
Macau's offshore regime will be revoked on 1 January 2021. While the main reason for establishing an offshore company is to take advantage of an offshore regime, primarily for tax benefits, in light of this impending revocation, such advantages will soon be inapplicable to offshore companies established in Macau.
This article addresses the rules and procedures governing the establishment and maintenance of private trusts, foundations and charities in Liechtenstein. For example, as there is no prohibition on accumulating income and no rule against perpetuity, the most important types of trust are discretionary trusts and fixed-interest trusts. In addition, foundations can be used for purely private-benefit or common-benefit purposes, or a combination thereof.
The first-ever challenge to a decision of Channel Islands Financial Ombudsman Douglas Melville has been heard by the Jersey Royal Court. The court upheld the ombudsman's decision that local mortgage broker and lender Future Finance pay two individuals more than £63,000 in compensation.
The High Court recently ruled that parties cannot be ordered to engage in early neutral evaluation or financial dispute resolution procedures where one party objects to doing so. The case in question centred on a claim brought by a widow under the Inheritance (Provision for Family and Dependants) Act against her late husband's estate and two lifetime trusts. The claimant sought variation of the trusts in order to meet her reasonable needs, but her stepson strongly resisted her claim.
Two recent cases in the Guernsey Royal Court – one relating to the variation of a settlement and one relating to the winding up of a trust – demonstrate the complex trusts cases that regularly come before the court. The first case involved an application from two mothers on behalf of their children, whose father is a famous professional footballer. In the second, an investment firm, as the sole member of a discretionary class of beneficiaries, applied for a trust to be terminated and the trust fund to be distributed to it.
This article addresses notable recent developments regarding the provision of private client services in Liechtenstein, including regulatory changes and case law. Of note is the abolition of the distinction between offshore and onshore companies by the introduction of a uniform corporate income tax rate of 12.5%, which, among other things, made Liechtenstein companies more attractive internationally.
Anyone that has been refused planning or building permission or disagrees with a condition that has been attached to a planning or building permission or anyone that owns or occupies a building or land where a building, place or tree has been listed can appeal against a planning decision. However, Jersey planning appeals raise numerous questions regarding costs and the appeal process.
The Income Tax (Substance Requirements) (Implementation) Regulations 2018, as amended, came into effect on 1 January 2019 and apply to accounting periods commencing on or after that date. The new economic substance requirements apply to certain Guernsey tax-resident companies and have been passed in order to comply with the EU Code of Conduct Group on Business Taxation. This article summarises the current position relating to the substance requirements for fund management companies.
In a judgment which is likely to have wide-ranging implications for local companies subject to the '60/40 rule', the Privy Council recently held that local companies may confer on non-Bermudians "de facto control by commercial arrangements", provided that non-Bermudians have no control over the manner in which directors and shareholders vote.
When planning for the transfer of wealth to the next generation, families and their advisers must consider the context in which it will take place. On current trends, planning for changes of domicile and to counter both electronic security risks and bouts of mental illness are likely only to increase in future importance.
The Bahamas has an unregistered land system that is based on the conveyancing laws of England and Wales issued before 1925. Therefore, deeds and documents should be recorded in the Registry of Records in The Bahamas as soon as possible. Priority becomes particularly important in high-net-worth commercial and condominium development transactions.
The Taxation Law 2019 has introduced new economic substance requirements which apply to certain Jersey tax-resident companies. The requirements were passed to comply with the EU Code of Conduct Group on Business Taxation for the purpose of demonstrating that the profits generated by Jersey companies which carry on certain specified geographically mobile activities are commensurate with their economic activities and substantial economic presence in Jersey.
Increasingly stark and startling messages relating to the environment and climate change are now commonplace in the media. That is why it is so refreshing to know that Guernsey is taking a leading role on the world stage and using its strengths to produce a significant positive impact, including through the implementation of the Guernsey Green Fund.
In a recent case, the Supreme Court delivered an important judgment in which it exercised its inherent supervisory powers over trusts to appoint protectors. The court also reaffirmed the wide breadth of its jurisdiction under Section 47 of the Trustee Act 1975 to grant trustees power to vary trusts when it is satisfied that it is expedient to do so.
When one or both parties to a marriage have a connection with another country in addition to England and Wales, there are international considerations and implications to take into account when considering a nuptial agreement. This could be because of where they live, their domicile or nationality or where their assets are based. Among other things, couples should consider where an agreement should be drawn up and whether an English nuptial agreement will be upheld abroad.
The government and the Cayman Islands Monetary Authority are well aware that it is imperative that the Cayman Islands is not only perceived to, but does in fact, play a central role in the global fight against money laundering and terrorist financing. At the same time, there is a deep understanding of the need to remain competitive and commercial. This article addresses a number of key questions concerning the 2018 amendments to Cayman's anti-money laundering regime.
Wealth-related disputes are common – even when family and relationships are valued over material needs. As family businesses and relationship circles get larger and more complex, parties often seek to separate commercial control, ownership and interests and achieve greater independence. This brings to the fore the significance of family settlements, which allow families to achieve these objectives amicably while preserving their values and honouring the wishes of all family members.
Employers want maximum restriction on employees who leave but must be careful not to overstep the mark as covenants which are unduly restrictive risk being struck out by the courts. As such, employers should be aware that disgruntled employees can file complaints with the Guernsey Competition and Regulatory Authority and might also bring civil actions for damages pursuant to Section 42 of the Competition Ordinance.